Camtek (CAMT) to Report Q3 Earnings: What's in the Offing?
Camtek Ltd. CAMT is scheduled to report third-quarter 2023 results on Nov 14.
The company has surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average positive surprise of 4.1%.
In the last reported quarter, Camtek posted non-GAAP earnings of 45 cents per share, a penny lower than the year-ago quarter’s earnings of 46 cents per share. However, the figure surpassed the Zacks Consensus Estimate of 42 cents per share.
Revenues decreased 7% year over year to $73.8 million. However, the top line topped the consensus mark of $72 million.
For the third quarter, the company expects revenues to lie between $77 million and $79 million. The Zacks Consensus Estimate is pegged at $78.3 million, indicating a year-over-year decline of 4.6%. Further, the consensus estimate for earnings is projected at 48 cents per share, flat compared with the year-ago quarter.
Let’s see how things are shaping up for this quarter.
Camtek Ltd. Price and EPS Surprise
Camtek Ltd. price-eps-surprise | Camtek Ltd. Quote
Factors to Note
Camtek’s third-quarter performance is likely to have benefited from the increasing demand for advanced interconnect packaging technologies, such as heterogeneous integration (HI), which includes chiplet modules and high bandwidth memory. During its second-quarter earnings conference call, the company stated that there is consensus in the semiconductor industry that the new interconnect packaging technologies could be an effective way to increase computing power.
Camtek’s robust product portfolio is expected to have aided its performance across all end markets during the to-be-reported quarter. The company’s strengthening metrology business is likely to have sustained momentum with the support of its new advanced solutions.
However, Camtek’s third-quarter overall financial performance is likely to have been hurt by softening IT spending. Enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
Furthermore, the company’s continued aggressive investment in research & development to comply with the technological road maps of HI technology is likely to have weighed on the bottom line.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Camtek this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though CAMT currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Synopsys SNPS, Snowflake SNOW and Keysight Technologies KEYS have the right combination of elements to post an earnings beat in their upcoming releases.
Synopsys carries a Zacks Rank #2 and has an Earnings ESP of +0.94%. The company is scheduled to report fourth-quarter fiscal 2023 results on Nov 29. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 4.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Synopsys’ fourth-quarter earnings is pegged at $3.04 per share, indicating a year-over-year increase of 59.2%. The consensus mark for revenues stands at $1.58 billion, suggesting a year-over-year surge of 23.3%.
Snowflake is slated to report third-quarter fiscal 2024 results on Nov 29. The company has a Zacks Rank #2 and an Earnings ESP of +15.71% at present. Snowflake’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 244.5%.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 15 cents per share, suggesting an increase of 36.4% from the year-ago quarter’s earnings of 11 cents. Snowflake’s quarterly revenues are estimated to grow 27.6% year over year to $710.5 million.
Keysight carries a Zacks Rank #3 and has an Earnings ESP of +0.18%. The company is scheduled to report fourth-quarter fiscal 2023 results on Nov 20. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 8.3%.
The Zacks Consensus Estimate for Keysight’s fourth-quarter earnings stands at $1.87 per share, indicating a year-over-year decline of 12.6%. It is estimated to report revenues of $1.3 billion, which suggests a decrease of approximately 10% from the year-ago quarter.
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Camtek Ltd. (CAMT) : Free Stock Analysis Report
Synopsys, Inc. (SNPS) : Free Stock Analysis Report
Snowflake Inc. (SNOW) : Free Stock Analysis Report
Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report
